August 28, 2006 at 10:00 AM EDT
VSNL to Upgrade Trans-Pacific Submarine Cable Network to One Terabit Capacity to Serve Increased Customer Demand

VSNL Singapore Pte Ltd. ("VSNL International"), the international arm of Videsh Sanchar Nigam Limited (NYSE:VSL) announces today the upgrade of its high capacity Trans-Pacific submarine cable network to a 1 terabit capacity to serve increased customer demand between Asia and the US. The Trans-Pacific Network (TGN-P) connects several key US West Coast Internet and carrier exchanges directly to Japan and onward to other important Asian destinations through multiple regional sub-sea cable interconnections.

Acquired by VSNL in 2005, as part of the Tyco Global Network (TGN), the TGN-P is designed as a ring with two 12,000km submarine cables. Each cable carries eight fiber pairs with each fiber capable of carrying up to ninety-six 10 Gbit wavelengths, delivering a total network capacity of 7+ Tbit/s. Currently, 640Gbit/s of capacity is activated on the TGN-P system and is used by VSNL International customers to carry live voice and data traffic.

Vinod Kumar, President, VSNL International, comments, "In response to significant growth in bandwidth demand over the past 12 months, coupled with strong forecasts from independent analysts, VSNL International has decided to invest in this upgrade to better serve our customers and enable them to choose us as a single source provider for all their bandwidth requirements. Our customers will benefit from easily scalable bandwidth and unparalleled connectivity on the largest Trans-Pacific system available today."

The TGN-P will be upgraded to a lit capacity of almost 1000 GBit/s and VSNL International expects the first phase of this upgrade to be implemented by the end of 2006.

About VSNL

Videsh Sanchar Nigam Limited (NYSE:VSL), a company incorporated under the laws of India, is now a global communications services provider offering through its multiple subsidiaries a comprehensive suite of communications solutions for carriers that need global reach and reduced total cost of ownership.

VSNL's Global Network spans 4 continents, comprises major ownership in 206,356km of terrestrial network fiber and subsea cables, and offers the greatest diversity to, and within, India. With Trans-Atlantic and Trans-Pacific data transfer capacity of 1 trillion bits per second and a worldwide MPLS network, VSNL's footprint creates an unparalleled platform to deliver scalable connectivity to the key global business pathways.

VSNL has a global presence including operations in USA, Canada, UK, South Africa, Singapore, Sri Lanka and India making it the first Indian truly global telecommunications company. Its range of service offerings include wholesale voice, private leased circuits, IP, MPLS, VPN, Internet access, hosting, mobile signaling and several other IP services. The company is now poised to offer managed data services and deliver end-to-end telecommunications solutions to carriers and enterprises globally.

VSNL is a part of the Tata Group, a $22 billion global conglomerate comprising 93 operating companies. VSNL is listed on the major stock exchanges in India and also has its ADRs listed on the New York Stock Exchange. (www.vsnl.in). VSNL's international division, VSNL International, is headquartered in Singapore with regional offices in the US, Europe, and India. Visit us at www.vsnlinternational.com.

Forward-looking and cautionary statements

Certain words and statements in this release concerning VSNL and VSNL International (collectively hereinafter "VSNL") and its prospects, and other statements relating to VSNL's expected financial position, business strategy, the future development of VSNL's operations and the general economy, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of VSNL, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding VSNL's present and future business strategies and the environment in which VSNL will operate in the future. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, changes in government policies or regulations and, in particular, changes relating to the administration of VSNL's industry, and changes in general economic, business and credit conditions. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in VSNL's control, include, but are not limited to, those risk factors discussed in VSNL's various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov.

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